Long-Term IDRs, National Long-term ratings, rating
Support and Support Rating reflect the lower limit of the magnitude
ekstraordinari will support for state-owned banks in times of need
government based on majority ownership, systemic importance of banks
The role of the domestic economy and the banks on
government policy. Fitch believes that the four banks have impact
Systemic against the state due Mandiri, BRI, BNI and BTN respectively
is the largest bank, the second largest, fourth and tenth of total assets
banking in Indonesia. Four banks together constitute 35.2% of the total
system assets at the end of the first half of 2013. Term National Rating
BTN length lower than other banks because the government
reflecting the impact of lower systemic.

Viability Rating (Viability Rating / VR) Bank Mandiri at 'bb +' reflects
improved asset quality, healthy profitability, sufficient capital,
majority ownership of the state and its position as the largest bank in Indonesia.

BRI Viability Rating at 'bb +' reflects the strong profitability - one
one of the highest in the industry - and its position as the second largest bank in
Indonesia in Indonesia focuses on micro-credit with asset quality
satisfying. BNI Viability Rating at 'bb' reflects the bank's performance
relatively weak, despite the improvement of asset quality and
profitability, as well as smaller networks than Mandiri and BRI.

Fitch expects profitability and revenue banks will experience
but the pressure will be maintained, although the condition of the domestic economy slows,
because the banks have improved their credit risk management and portfolio
credit has been more diversified.

Credit growth is expected to slow to about 15-20% due to
rising interest rates, commodity price declines and the depreciation of the rupiah. it is
can also lead to an increase in non-performing loans in 2013 from the position
low at the end of June 2013. The increase in funding costs, lower demand
loans and rising provisioning costs will likely inhibit growth
profit.

Of the four banks, Fitch expects loan growth BTN will most
slightly affected by the progressive advance of regulations for the purchase
property that was issued in September 2013. The regulation does not
impact on subsidized loans, which is largely a portfolio BTN
which is where most of the borrowers are first time home buyers.

Fitch estimates that, in the medium term, the financial performance of banks
owned by the government will remain good in the midst of economic conditions
deteriorated, supported by strong cushion to absorb losses
considering the strong profitability, and high provisioning
sufficient core capital. Based on the results of the stress test, state banks
have sufficient income before provision to absorb the loss rate
higher borrowing sanpai 5-5.5% of the total loan BRI, Mandiri and
BNI and 2-3% of the BTN, which is higher than the average loan losses
during 2009-H113 is smaller than 1% for the BTN, 1% for Mandiri, and 2%
for BRI and BNI.

BTN lower provisioning costs compared with three state-owned banks
others, recovery (recovery) of troubled loans are housing loans
consistently better thus providing an additional buffer against losses
loan. Fitch notes that Bank Indonesia has been more proactive in
prevent excessive risks that will increase sharply in the system.

For example, BI issued a regulation in 2012 to advance and September 2013
to organize a consumer loan asset quality, loan ratios imposed
to deposit more stringent for banks, and implement
secondary provisioning policy (secondary reserve) in 2013 as the repson
the deteriorating domestic economic conditions.

Change of Indonesia's sovereign ratings ('BBB-' / Stable) and the tendency
government to provide timely support would be cause
changes in the ratings of those banks. Decline in financial profile
individual state-owned banks will have an impact on small kemungkinanannya IDRs
and national rating unless the factors that affect the support of
government also weakened. Global Initiasi to reduce government support
implicitly the banks can negatively impact ratings
bank, but this is not believed to be applied in Indonesia in the future
close.

FACTORS RANK MOVER - Viability Rating

The significant weakening asset quality can impact negatively on
bank profitability and capital impairment risks may put pressure
ranked against the viability of banks. State-owned banks have a financial profile
relatively strongly indicate the possibility of an increase in viability ratings
The banks can maintain appropriate levels of profitability risk,
asset quality and healthy capital amid the conditions perekoniman
worse today.

MOVER FACTORS LEVEL - Debt Level

The ratings program bonds denominated in foreign currency and rupiah and
senior bonds is equal to the Long-Term IDRs and ratings
National Long-Term and Short-term National rating. it is
reflects the corporate bond obligations that are direct, not
conditional, not guaranteed and not a subordinated debt and
rated equally with unsecured bonds and other senior.
Changes to Long-Term IDRs and National Long-ranking
Long and Short-term National ratings will be affected
rankings bonds.

BRI subordinated bond ratings assigned three ranks below the rank
National BRI obtained from viability ratings, which take into account
one notch for loss severity and two notches for non-performance risk, which
reflects the delay clause coupon and / or principal.

The ratings PT Mandiri Tunas Finance, which is engaged in financing
car, powered by a high propensity of support from shareholders
majority, Mandiri, if necessary. The rankings are
reflects the close ties and strategic interests of the Bank Mandiri MTF
in developing consumer loan portfolio. Mandiri will continue to provide
funding support for MTF through joint financing scheme where Mandiri
bear most of the credit risk. Any dilution in the ownership and
weakening support from Mandiri will be able to put pressure on the ratings
MTF.